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Sexual equality law on the drawing board

The federal government has trumpeted new laws to protect Australians from prejudice against their sexual orientation, after pushing back plans for a broader revamp of anti-discrimination laws.

Attorney-General Mark Dreyfus on Wednesday announced Labor would introduce legislation this week to ensure equality for gay, lesbian and transgender people and those of intersex status.

The new sexual orientation protection bill builds on the government's efforts to remove discrimination against same-sex couples and their children.

"This reform to the Sex Discrimination Act is long overdue and much too important to be delayed any further," Mr Dreyfus told reporters in Canberra.

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The coalition has indicated it will support the bill, which would mean people in same-sex relationships were treated the same as other de-facto couples for commonwealth entitlements.

Matters of welfare, tax, superannuation, health and aged care, immigration, child support and family law will also be covered by the changes.

Lesbian, gay, bisexual, transgender and intersex group All Out said it was an historic move.

"It is worthy of bipartisan support," All Out Australian campaign manager Hayley Conway said in a statement.

Mr Dreyfus also announced he was sending the government's draft anti-discrimination bill back to his department for further work.

"I'm not satisfied that the bill in its current form passes the test of striking the right balance," he said.

But the minister was adamant the government was still planning to roll five existing discrimination statutes, governing age, disability, race, sex and other forms of discrimination, into a single piece of legislation.

Mr Dreyfus accused the coalition of contributing nothing to the anti-discrimination debate except a vow to repeal racial vilification laws.

"Anyone who thinks there is no boundary to keep hate speech out of our democracy is leading our nation down a very ugly and misguided path," he said.

Greens spokesperson on gender issues Sarah Hanson-Young said the changes to the Sex Discrimination Act were welcome, but she criticised Labor for not pushing ahead with the broader anti-discrimination measure.

"For the Labor government to say they need more time is simply their wriggle-worm way of getting out of moving ahead with reform that needs to happen, but they need the conviction to deliver," she said.

But business groups like the Australian Industry Group said the government was right to delay the consolidation of anti-discrimination laws.

"In its current form, the government's draft bill would cause more problems than it solves," Ai Group chief Innes Willox said in a statement.

The Human Rights Law Centre said the delay was disappointing because the law might not be introduced.

"The political reality is the choice to delay these reforms means effectively abandoning their introduction before the election," executive director Hugh de Kretser said in a statement.